Smoke. Drink. Conspire. Part 2

I was in a secret room I did not know existed, surrounded by successful businessmen. On the mirror it read “Smoke. Drink. Conspire.”

The men I was surrounded by did not stumble or luck their way into this secret room in the cigar lounge (like I may have). These individuals planned to be in this exact spot 10-15 years ago. No, I do not mean they planned to be sitting in a cigar lounge on the north side of Indianapolis back in year 2000. However, they did plan to be in their current financial situation. Everyone in this room exemplified what I later found out to be called a “Millionaire’s Mindset”. These men did not develop their wealth quickly, but rather slowly and purposefully. There are two basic rules these men follow. Rules that I was not yet aware of. However, each man swore by them and when they explained to me why, a light went off in my head.

Rule #1. Do not lose money.

Rule #2. If you ever feel tempted, refer back to rule #1.

You might think that’s common sense.

I know I haven’t left any money laying around and I am pretty sure there aren’t any holes in my pockets that money could fall out of. But this is not what they were referring to. The holes in which I was losing money was not caused by loose threads in my inseam. Instead they came in the form of shoes, clothes, electronics, and cars.

The wealthiest people in the world did not reach that status because they were big spenders, but rather because they are big savers. This reminds me of the episode of Aaron McGruder’s TV show The Boondocks, called “Fund Raiser”. In one moment of this episode a homeless man asked Riley for some spare change. Riley quickly said “no” as he entered his newly acquired hotel apartment. As he turned his nose up to this homeless man you could hear his thought process. “You can’t be raising funds and giving funds away at the same time. That’s like getting high on your own supply.”

While I am not saying you shouldn’t be giving to charitable organizations, I frequently participate in Hashtag lunch bag in Indianapolis (look it up). However, Riley’s thought process does make a lot of sense. You can’t give money away and save money at the same time. The men in this room see money as something to invest rather than something to spend. Their investments are calculated. And if a particular item does not hold or increase its value over time, chances are they are not buying it.

What are the holes in your pockets? I know mine are expensive cigars and nights out with the fellas. Studies have shown that the average adult spends 2-3 hours each month studying and thinking about their money. That’s usually at bill paying time. In contrast the average self made millionaire reviews and plans their finances 20-30 hours a month. These men have spent hours containing or sewing up their holes

All the men in this room had two things in common. They had incredible taste in cigars, and they save at a world class rate.  Instead of living a lifestyle that matches their income, these men save 15% – 20% of their income. The goal isn’t to appear to be wealthy with clothes, cars, and the latest technology, but to actually have your bank account reflect it. How much did you save last year?

As I have said before, it is time that we change our thinking. It is not always an easy task to find where the money is falling out of your pocket and its never a task we want to complete. But the sooner we look the sooner we can make a difference. If you need help seek out a professional. Financial advisors are not only for the wealthy. They are also for those who have questions and are ready to start making a difference in their financial life.